{"id":47067,"date":"2025-01-25T18:39:41","date_gmt":"2025-01-25T18:39:41","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/cambodia-is-top-choice-for-japans-garment-sector-moguls\/"},"modified":"2025-01-25T18:39:41","modified_gmt":"2025-01-25T18:39:41","slug":"cambodia-is-top-choice-for-japans-garment-sector-moguls","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=47067","title":{"rendered":"Cambodia is Top Choice for Japan&#8217;s Garment Sector Moguls"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><span data-contrast=\"auto\">According to Chea Vuthy, deputy secretary general of the Council for the Development of Cambodia (CDC), the Kingdom is expecting a boost in Japanese foreign investment due to major garment companies shifting to Cambodia as their manufacturing and procurement bases.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is due to \u201crising labor costs and the zero Covid-19 policy of the Chinese government,\u201d said Vuthy, adding that other Southeast Asian and nearby countries like Vietnam, Bangladesh, and Indonesia are also benefiting from this shift. Said labor costs have reached around $670 monthly for average factory workers in Guangzhou, China, while <\/span><a href=\"https:\/\/ips-cambodia.com\/cambodia-average-salaries-2022\/\"><span data-contrast=\"none\">the minimum wage for same sector in Cambodia will be $200 by 2023.<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Vuthy revealed this development during the European Chamber of Commerce in Cambodia (EuroCham)\u2019s Responsible Business Hub event in Phnom Penh last week, which also launched the Garment, Footwear, and Travel (GFT) Sector Brief Issue No. 1.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Among the major companies making the shift are Adastria, Aoyama Trading, and Matsuoka Corporation Aside from the rising costs, the move is also in line with the Regional Comprehensive Economic Partnership (RCEP) as it will allow Japan to take advantage of existing exemptions from textile import tariffs.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">From 81% in 2011, Adastria\u2019s China-based production fell to 59% in 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For Matsuoka Corp., a contract manufacturer under Fast Retailing, production was at 50% last March and is planning to decrease even more to 29% by 2025. Instead, the company will increase production in Bangladesh to 34%, and 28% in Vietnam.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Other reasons cited for these shifts are the depreciating yen and price increase of raw materials in China, making the RCEP, which <\/span><a href=\"https:\/\/asean.org\/regional-comprehensive-economic-partnership-rcep-to-enter-into-force-on-1-january-2022\/\"><span data-contrast=\"none\">came into effect last January,<\/span><\/a><span data-contrast=\"auto\"> a new lifeline for the affected companies.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">GFT market set for more growth<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In addition to these shifts in manufacturing and procurement bases, the\u00a0GFT Sector Brief also mentioned <\/span><a href=\"https:\/\/kiripost.com\/stories\/cambodias-gft-sector-suffered-setbacks\"><span data-contrast=\"none\">growing interest from the government in promoting green and renewable energy investment as well as skills development<\/span><\/a><span data-contrast=\"auto\"> in order to upgrade resilience and diversification of the Cambodian market.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is playing to the Kingdom\u2019s strengths, as the garment sector has been the backbone of the local economy for more than two (2) decades: prior to the covid-19 pandemic, GFT represented an average of 10% of Cambodia\u2019s annual GDP.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At present, there are also <\/span><a href=\"https:\/\/www.khmertimeskh.com\/501206796\/cambodia-set-to-explore-new-markets-for-gft\/\"><span data-contrast=\"none\">feasibility studies being conducted for more Free Trade Agreements (FTAs)<\/span><\/a><span data-contrast=\"auto\"> between Cambodia and Japan, India, and Bangladesh, which if ratified would further open opportunities for the country\u2019s GFT exports and other commodities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>According to Chea Vuthy, deputy secretary general of the Council for the Development of Cambodia (CDC), the Kingdom is expecting a boost in Japanese foreign investment due to major garment companies shifting to Cambodia as their manufacturing and procurement bases.\u00a0 This is due to \u201crising labor costs and the zero Covid-19 policy of the Chinese [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":47068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[99],"tags":[13128,2463,4739,9605,28392,12615,7824,28393,11330,213,2703],"dealstore":[],"offerexpiration":[],"class_list":["post-47067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-cambodia","tag-choice","tag-factory","tag-garment","tag-garment-sector","tag-japans","tag-manufacturing","tag-moguls","tag-sector","tag-top","tag-warehouse"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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